Recession Strategy - Part 1: Introduction

Recessions are particularly hard on owners and managers of businesses and non-profits. Those responsible for the day-to-day activities of businesses, government departments and organizations are wired for success! It would be counterproductive to have any other perspective. In 1979, during a past recession, James Stone framed it appropriately: "Managers expect and are rewarded for growth in output and earnings. Their concept of success is, therefore, tied to expansion; their energies and skills focus on corporate growth; they are committed to the optimistic belief that the future will be quantitatively better; and they position their companies to fulfill this concept and need."

Stone felt that this "quantitatively better" perspective got in the way of a fundamental shift in the manager's "patterns of thought, behavior, and expectation." Instead of using their management skills to mitigate the recession's harm, he said the "manager sees recession as a period where real work cannot be done. The result is crisis management, unduly impulsive reaction, and the hope that the problem will go away."

Since it will not go away, at least not in the near-term, let's look at how we can use our management and leadership skills to minimize the human and financial reversals caused by the downturn. Though recession planning can be unpleasant, putting off strategic action can be worse. Over the next several weeks, let's look at ways to help us weather these economic challenges.

I would like to hear your thoughts and ideas.

Stay tuned!